In Montana, state lawmakers passed House Bill 725, authorizing sports wagering under the authority of the Montana Lottery. Earlier this month, the state lottery commission unveiled draft rules to implement sports wagering. Under the proposed rules, sports betting only would be allowed at businesses with gambling operator licenses. Montana currently has slightly more than 1,400 qualified operators.
In a recent public comment session, however, some dissenters questioned a proposed rule that sports betting only could be offered at businesses that hold a liquor license as well as a gambling operator license. Lottery officials said limiting sports wagering to bars, taverns and restaurants “will ensure a sufficient number of locations to offer sports wagering and help limit any adverse impacts of an overabundance of locations.” Alcoholic beverage licenses are distributed based on population.
Montana Tavern Association President John Iverson said, “It’s clear through the legislative process that this sports betting product was designed to be in bars, restaurants and taverns that held an appropriate alcohol license and that are licensed gaming operators. We believe the proposed rules clearly and correctly align with legislative intent,” Iverson said.
But opponents said the rule created a restriction that wasn’t part of the actual law. Attorney Lyndon Scheveck, representing investors called the Arete Group in Billings, said, “Not once in that bill does it state that you need a liquor license. They’re trying to add a requirement that wasn’t even in the bill. You’ve got to have a liquor license–well, that would exclude establishments such as bingo.” Scheveck said the group would sue if the Lottery did not change the proposed rules.
Observers said the Gaming Industry Association of Montana also may be considering a lawsuit. GIAM President Neil Peterson questioned what types of bets would be allowed since that’s not clearly defined under the proposed rules.
Lottery officials are expected to award the sports betting contract to current lottery vendor Intralot. Some legislators have voiced concern that the contract would not go out for bid; to date, no Request for Proposal has been issued.
A spokeswoman said, “We’ve also been working on a product launch and naming it and the terminal and what will be offered and how we’ll market it.” She stated the Montana Lottery commission expects to vote on the proposed rules at its November 21 meeting and still plans to launch sports betting by the end of the year.
The sports betting law does not allow mobile sports betting, but patrons standing within range of a lottery terminal will be able to bet on their mobile devices instead of the terminal. Remote registration will also be available.
